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Target: Epithermal system below a steam heated zone and sinter along a fault system with known gold.
Location: Four miles NNE off the Nightingale Exit on Highway 80 east of Fernley in Churchill County. The Project is 360 acres with 18 claims under the direct control and 100% ownership of AuEx. The project area is adjacent to the AuEx-Tournigan JPW project.
Ownership: AuEx has granted Tournigan, a Vancouver based, TSX.V listed company, an option to earn a 51% interest in the project by funding $1,000,000 in exploration on the project within five years. Tournigan paid AuEx $35,000 on signing (which includes payment for other projects in the area) and is obligated to fund $100,000 of exploration in the first year of the option. Upon vesting an interest, Tournigan may then elect to earn an additional 9% interest (60% total) by spending an additional $1,000,000 within three years on the project and may earn an additional 10% interest (70% total) by funding all expenditures through completion of feasibility and by arranging project financing. The agreement also contains a 150 square mile Area of Interest ("AOI") that surrounds and includes three established projects including Gypsum Valley. AuEx has performed remote sensing, gravity and magnetics analysis that has identified possible exploration targets. Tournigan may establish additional exploration projects within the AOI for which the earn-in requirements are one-half of the amounts noted above. Tournigan will be operator for all exploration.
History: The project was located by satellite using proprietary remote sensing techniques. There is no known prior work history here.
Geology: The project sits in a step over to a fault system that extends along strike from Brady's Hot Springs. It is believed that this could be a young geothermal related gold system as recently discussed in a review publication by Coolbaugh (2005) on gold and geothermal systems in Nevada. The gypsum within the argillic alteration in the fault is believed to be due to SO2 reacting with calcite in a steam-heated zone.
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